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Space is at a Premium

by 5m Editor
5 September 2009, at 8:36am

UK - Although fewer pigs were rolled by contract buyers and the last of the short weeks (until Christmas) is out of the way, spot demand remained fickle with space at a premium.

Contract sellers are still smiling most of the way to the bank and this week the DAPP dropped by only 0.28p to stand at 152p, so those selling on a DAPP-plus-4p basis were receiving around 15p more than equivalent spot quotes.

Where there was space, prices in the region of 140p were available for heavy bacon on a 14 probe with 2p to 4p above this on a tighter spec.

During the week interest perked up in lighter weight pigs for the "shop" trade, but the barbeque season is probably well and truly over for another eleven months and three weeks.

The value of the euro eased a shade this week and traded on Friday worth 87.1p, compared with 88p the week before.

Despite this, demand for cull sows continues to move ahead due to shortage of numbers, although European sow prices have remained unchanged.

As a result sow sellers with large loads available were able to command prices of 118p (or more) and this sector remains very much a seller’s market.

Weaner prices on the other hand are continuing to ease for a number of factors including some northern and western finishers still being tied up with what is fast becoming more like the rice harvest than a cereal one and a slow down in clearing finished pigs before re-stocking.

The latest AHDB 30kg ex-farm weaner average has now slipped to 353.37/head compared with 357.30/head in early June.

Further improvements in the value of European pigmeat will give producers some comfort for the autumn, but the good news is that the gap between United Kingdom and European Union pigmeat values is gradually narrowing but will continue to be influenced by the strength (or otherwise) of sterling.